Request for Expressions of Interest for Certified Sustainable Palm Oil Smallholder Development Fund

IFC Indonesia

Apply By: 10 May 2010

Indonesia | Mid-level

General Information

Date posted: 03 May 2010

Organization(s): IFC Indonesia

Country/Region: Indonesia

Apply by: 10 May 2010

Description

Subject: Request for Expressions of Interest for Certified Sustainable Palm Oil Smallholder Development Fund

IFC-Indonesia is seeking an individual consultant for an assignment.

BACKGROUND

IFC is formulating a comprehensive and consultative strategy to guide its involvement in the palm oil sector. The strategy will go beyond the palm oil sector, taking a broad view on agricultural commodities, so that a framework for the conduct of investment operations and advisory services, as well as for engagement with related stakeholders, can be defined. Until the strategy is completed, IFC will not approve any new investments in the palm oil sector. IFC Advisory Services will continue to engage in the development and delivery of advisory programs in the palm oil sector in Indonesia that are designed to strengthen smallholders / suppliers.

In 2004 the Roundtable on Sustainable Palm Oil (RSPO) was formed to promote growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders. Recognizing the importance of smallholders in the palm oil value chain, RSPO also assembled the Task Force on Smallholders (TFS) aimed at promoting the interests of smallholders in the RSPO process. In Indonesia, 40 percent of oil palm land is operated by smallholders, and this figure is only expected to grow. These smallholders, however, lack capacity and resources to become compliant with RSPO criteria and therefore are unable to shift their practices to improve both their productivity and sustainability.

At present, certified sustainable palm oil (CSPO) reaches the consumer through one of three ways: 1) Identity Preserved: Oil can be traced back to the specific plantation in which it has been cultivated and produced; 2) Segregation: Sustainably produced palm oil is kept separate from the non-sustainably produced oil all through the value chain; and 3) Mass Balance: This is an intermediate model towards Segregation the allows supply chain companies to gradually prepare for segregated trading.

In the Mass Balance model, the certified physical oil is allowed to be mixed with conventional oil throughout the supply chain, while allowing specific sustainability claims. Buyers wishing to trace their supply of sustainable palm oil use the UTZ Certified (an independent Dutch Foundation) web-based traceability system. By means of this system, all members in the palm oil supply chain (up to the final refinery) are able to register and confirm their CSPO purchases and demonstrate their commitment to the production of CSPO.

In addition, GreenPalm (a certificate trading program) administers the "Book and Claim" process, which enables companies to support the production of sustainable palm oil by buying certificates through an online trading system.

During the period April 2009-March 2010, over 681,000 mt of CSPO was sold. These strategies have begun to bear fruit and the rapid increase in the sale of CSPO is enabling RSPO to invest in several projects and activities to continue to shift all parts of the palm oil value chain toward greater sustainability.

ASSIGNMENT

IFC has been requested to take the lead in designing a financial mechanism/facility to distribute a proportion of the RSPO income from the CSPO trade to support smallholders to improve their practices. These resources may be directed to cover a portion of the smallholder costs of certification and/or the costs to improving their production methods or other projects.

IFC-Indonesia is seeking an individual consultant for an assignment. The objective of this assignment will be to provide recommendations on the terms and design of this financial mechanism (the "facility") and its associated project cycle, with an emphasis on design of the financial mechanism. Tasks can be divided into five components:

Problem definition and analysis;
Identification of best suited intervention/s and financial instruments (through the facility) to support them;
Design of financial mechanism/facility
Design of project cycle processes and M&E plan;
Implementation Plan/Roadmap.

SUBMISSION REQUIREMENTS

IFC-Indonesia now invites eligible consultants to indicate their interest in providing their services for a planned 70 work day assignment by submitting a response to this Request for Expressions of Interest (REOI).

Interested consultants must provide the following information that will indicate that they are qualified to perform the services:

Curriculum Vitae
Information on your expertise and experience with any prior similar assignments and experience in similar conditions, especially as they relate to the required qualifications below
Availability for up to 70 days from June 1^st, 2010.
Expected daily rate

Responses must be delivered to the below mentioned personnel by e-mail no later than Monday, May 10, 2010 at 15:00 WIB (3:00 pm). By responding to this REOI, you are confirming compliance with the World Bank Group Procurement Policy.

The responses will be reviewed and those consultants deemed best qualified in IFC's judgment will be short-listed. Selection and contracting will normally be made from responses to this notification, subject to availability of funding, with consultant selection based primarily on the response to this request for expression of interest according to the following criteria:

The following qualifications are required and must be demonstrated via the expression of interest:

Undergraduate or higher degree in agriculture, business, economics, development studies or other relevant field.

At least five (5) years of relevant work experience in the design or management of grant-making foundations or similar facilities that provide grants for the purpose of agriculture development, economic growth or community development.
Professional experience in developing countries.
In-depth experience with agriculture development, preferably with smallholder development.
Experience developing and documenting standard operating procedures, manuals and other process reference material.
Willingness to travel within Indonesia, Malaysia and/or other palm oil producing countries, especially to palm oil smallholder sites, as required.
Excellent writing skills.

The following qualifications are desirable:

At least five (5) years of relevant work experience in commodity development, commodity value chain, certification process in commodity value improvement preferably in palm oil development or the palm oil supply chain sector.
Previous experience in South East Asia, preferably in Indonesia.
Conversational Bahasa Indonesia or demonstrated experience working with an interpreter.
Ability to produce high-quality analytical work within specific and limited time.

All data and information received from IFC for the purpose of this assignment is to be treated confidentially and are only to be used in connection with the execution of the project's Terms of Reference. The contents of written materials obtained and used in this assignment may not be disclosed to any third parties without the expressed advance written notice of IFC.

All correspondence related to this REOI should be addressed in writing only by sending an e-mail to HCittadinanza@ifc.org. IFC is not responsible for any verbal explanation or interpretation of this or any other document used in preparing a bid or expressing interest in this project.